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I have heard . Between 2 and 3 cents for an increase for the VND. As far as research or some sort of empirical study of my own . I do not have that . But I do have a rather interesting article ..................

SBV’s statement on new exchange rate raises concerns

VietNamNet Bridge - The big change in the exchange rate, if it is made, would cause many depositors to withdraw dollar deposits before maturity, experts have warned, which would create market chaos.

The big change in the exchange rate, if it is made, would cause many depositors to withdraw dollar deposits before maturity

The Governor of the State Bank of Vietnam (SBV) Nguyen Van Binh, in an interview to Tuoi Tre, said SBV was planning a new foreign exchange policy under which people would have to pay a fee for deposits in foreign currencies, while dollar depositors would receive dong when they get deposits back instead of dollars.

“This is not good news for the market,” the representative of an investment fund told Thoi Bao Kinh Te Sai Gon.

“This would cause worries especially to foreign investors, because they don’t know how much money they have,” he said. “It is because they have to receive dong instead of foreign currencies, while the dong price is defined by the State Bank which is unpredictable.”

“I believe this is not what the investors want,” he maintained, adding that if the central bank makes such a big change with foreign exchange policy, foreign direct investors may leave Vietnam because they are insecure about their money.

Agreeing with the representative from the fund, an analyst warned that Vietnam may face massive money withdrawal not only from foreigners, but from Vietnamese depositors as well.

Many big investors who have millions of dollars at banks and do not intend to convert dollar into dong.

Meanwhile, those, who have idle money would not deposit dollars at banks. This means that the State Bank won’t be able to mobilize huge capital for economic development.

“If people have dollars, they would keep dollars in their coffers instead of depositing at banks, for which they would have to pay fees,” he said. “Meanwhile, foreign investment funds won’t put their money into banks in Vietnam.”

“I believe foreign direct investors, individual investors, foreign investment funds and people all would be against the policy,” he said.

The message from the Governor of the State Bank about the new foreign exchange policy has caused deep concern in the market. Bankers also think the new policy will not be welcomed.

“I am afraid that the policy will make the dollars flow out of the Vietnamese territory,” a senior executive of a commercial bank warned. “This will make dollarization even more serious.”

Also, according to the banker, he knows many big investors who have millions of dollars at banks and do not intend to convert dollar into dong.

The investors also deposit dollars at foreign banks, mortgage the dollars to borrow Vietnam dong at an interest rate of 5 percent and then deposit dong at Vietnamese banks at an interest rate of 6.5 percent. This allows them to have an interest rate margin of 1.5 percent.

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20, 000 I believe. But here is what is interesting . Vietnam is booming with investment . About a year or more ago Russia made an annoucement in anger after US sanction . That they would use the yen , the won and the dong in transactions instead of usd in time to come. It could very well be a good currency to own going forward . I'm confident it will be a good place to invest .

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Actually I think I paid $54.00 for a million here in Miami at Chase bank.

Boy, leave it to me to pay way more for something then I should! Like a dummy I bought through a dealer. Anyway, good thread MIT and thanks Blueskyline for the article. I'll have to see if Wells Fargo trades in VND.

2

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Actually Wells Fago dose trade in VND. Most of our local banks do. I called around to see what they were selling their's at and I got a different price from each one. Chase was the cheapest at that time. I don't know about now. Thats the beauty of the VND you can walk into a bank and buy it.

DR. CLARKE: Vietnam is busy and the government is giving a subtle time frame, as to when they plan to start moving the rates. Read this article, but especially the comments we posted here below, directly from the article, regarding Forex:

"Central Bank of Vietnam Sets Key Monetary Policies by Year End"From the article as quoted, read SPECIFICALLY THE FOREX COMMENTS: "The SBV (State Bank of Vietnam) affirmed to keep maintaining stable interest rate, liquidity, and forex market. Regarding the forex market, the SBV will continue to keep foreign exchange reserves at a high level and flexibly adjust the exchange rate in line with the market movements; stand ready to respond to rapid and sudden situations, keep a close watch on the forex market, and strive for fulfillment of macro-economic norms."

Folks, they're going to start moving the rate upwards soon. They MAY begin a significant move upward, as early as Aug. 26-28th. We feel though, that some further movements will occur in September, but even greater movement through last week of Oct. 24th, and the highest peak rates, by the last week of November.

Vietnam has a completely different agenda, plan and time schedule than Iraq - and it's tied to the movement of the Chinese Yuan. No matter how you slice it, or when you exchange, Everyone Wins! They're waiting for the official last "Go" from the bosses......but, it's already been decided - as indicated by this article.

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I will be calling Chase and BOA tomorrow to see if they are selling and at what price. I tried calling this evening but the 1-800 #s don't have that kind of information. I looked up on the internet and the VND is worth $44.85 for a million at this moment . Lets see what the banks want to charge for it. Im going VND shopping tomorrow for sure. I will let you know.